Problem 14-01A a-h Sheffield Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,800, direct labor $14,880, and manufacturing overhead 519,840. As of January 1, Job 49 had been completed at a cost of $111,600 and was part of finished goods inventory. There was a $18,600 balance in the Raw Materials Inventory account. During the month of January, Sheffield Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold during the month. The following additional events occurred during the month. 1. 2. 3. Purchased additional raw materials of $111,600 on account. Incurred factory labor costs of $86,800. Incurred manufacturing overhead costs as follows: indirect materials $21,080; indirect labor $24,800; depreciation expense on equipment $14,880; and various other manufacturing overhead costs on account $19,840. Assigned direct materials and direct labor to jobs as follows. 4. Job No. 50 Direct Materials $12,400 48,360 37,200 Direct Labor $6,200 31,000 24,800 51 52 x Your answer is incorrect. Try again. Calculate the predetermined overhead rate for 2017, assuming Sheffield Company estimates total manufacturing overhead costs of $1,041,600, direct labor costs of $868,000, and direct labor hours of 24,800 for the year. (Round answer to the nearest whole percent, e.g. 25%.) Predetermined overhead rate 108|1% Your answer is partially correct. Try again. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. 24,800.00 14,880.00 19,840.00 $ $1 Jan. 12,400.00 6,200.00 9,373.78 37,200.00 21,080.00 29,213.78 Cost of completed job Direct materials 37,200.00 $ Direct labor 21,080.00 Manufacturing overhead 29,213.78 Total cost 87,493.781 Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. 48,360.00 31,000.00 39,985.66 48,360.00 31,000.00 39,985.66 Cost of completed job Direct materials 48,360.00 $ Direct labor 31,000.00 Manufacturing overhead 39,985.66 Total cost 119,345.66 Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. 37,200.00 24,800.00 31,240.56 x Your answer is incorrect. Try again. (c) Record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. (d) Record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary. (e) Total the job cost sheets for any job(s) completed during the month. Record the completion of any job(s) during the month. (f) Record the sale of any job(s) during the month. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Manufacturing Costs Raw Materials Inventory Factory Labor Manufacturing Overhead X x Purchase raw materials X X X Incurred factory labor X X x X X Factory depreciation Other overhead costs Indirect materials x Indirect labor lllllllllll (d) Direct materials Direct labor x X X X X Assigned overhead IX X (e) Jobs completed III X (f) Jobs sold Your answer is incorrect. Try again. What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of? x Finished Goods Inventory 32,240 Jobs 50 and 52 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is correct. What is the amount of over- or underapplied overhead? Manufacturing Overhead 6,200 Underapplied